Brandy Corp. leased a building and received the $80,000 annual rental payment on June 15, 2018. The beginning of the lease was July 1, 2018. Rental income is taxable when received. Brandys tax rates are 40% for 2018 and 30% thereafter. Brandy had no other permanent or temporary differences. Brandy determined that no valuation allowance was needed. What amount of deferred tax asset should Brandy report in its December 31, 2018, balance sheet?

a. $10,000 b. $12,000 c. $14,000 d. $16,000